What may be an indicator of economic development?

Improvement in material living standards is a key indicator of economic development because it reflects the overall wellbeing and quality of life experienced by individuals in a society. Material living standards take into account factors such as income levels, access to essential services like healthcare and education, and the availability of goods and services that contribute to a comfortable lifestyle. When material living standards improve, it is often associated with economic growth and development, as it indicates a more productive economy that can provide for the needs and wants of its population.

This option is favored over others because GDP growth, while a common measure of economic performance, does not always correlate directly with improvements in material wellbeing. A society could experience GDP growth without equitable distribution of wealth, leaving many individuals in poverty. Increased military spending is typically more associated with national security priorities rather than direct improvements in living conditions. Lastly, a high population growth rate can occur independently of economic development, as it often presents challenges in resource allocation and can strain public services, rather than being a direct measure of development itself. Therefore, the focus on material living standards provides a clearer and more holistic picture of economic development.